Nike shares slides 8.5% on weak revenue outlook

• Nike shares fell 8.5% to $32.15 premarket after the company forecast a high-single-digit fiscal 2027 revenue decline.
• First-quarter revenue fell 4% to $11.21 billion, below the $11.32 billion Wall Street estimate, as Greater China sales weakened.
• Nike expects its Pace restructuring program to generate about $2.5 billion in cumulative savings through fiscal 2031, with job cuts beginning in 2027.

Nike (NYSE:NKE) shares fell 8.5% to $32.15 premarket after the sportswear company forecast a high-single-digit fiscal 2027 revenue decline following first-quarter sales of $11.21 billion.

Wall Street had expected full-year revenue to decline about 2%, while first-quarter sales missed the $11.32 billion analyst estimate as Greater China revenue dropped 26% on a currency-neutral basis.

Nike said its Pace restructuring program is expected to deliver approximately $2.5 billion in cumulative savings through fiscal 2031, with about $1 billion in related pre-tax charges and employee notifications beginning in 2027.

Nike expects adjusted fiscal 2027 earnings of $1.15–$1.35 per share, excluding about $0.15 in restructuring expenses.

Following the results, Nike's share price was down 8.5% at $32.15 in premarket trading.

Nike’s first-quarter revenue declined 4% year over year, while gross margin increased 60 basis points to 42.8% and North American currency-neutral sales rose 2%.

The company is also consolidating its global structure into three regions and plans a new India campus, while management said updated fiscal targets will begin arriving in November as the restructuring progresses.